``Our instinct is people want their jobs and they're willing to be a little restrained in what they are asking for incrementally.

``Obviously they don't want to take less money home and we're trying really hard not to do that.

``The reductions in Devonport are around having less casuals - it's not about permanents. No one is suggesting we are going to drop rates, but we do need more output for what we spend.''

Mr O'Brien said that after an improvement in the Australian dollar that helped Simplot to be more competitive and the lucrative new Coles and Woolworths contracts, he felt a little more bullish leading into this year than last.

However, the AMWU presented a log of claims to Simplot late last year that included a wage increase that Mr O'Brien said was essentially the union looking to maintain similar wage rises to now, and the factory would not afford it.

The AMWU could not be contacted yesterday but the union has said in a report that if Simplot comes to the table to blame the factory's unprofitability on the workers, it would not be a good start.

Simplot wants a freeze on wage increases for three years to compete with cheaper international labour costs.

``The main thing is we need restraint on the wage increase . . . we don't want to be putting 4 per cent on top of the wages bill each year,'' Mr O'Brien said.

He said the suggestion that Simplot reduce its executive pays did not offer a real solution, and at executive level Simplot had not had a pay increase for two years.